Car loan thread. Paging Benny...

[frorider]

http://jalopnik.com/a-record-32-perc...the-1789425396

According to a study conducted by Edmunds this year, a record 32 percent, or nearly one-third, of all vehicles offered for trade-ins at U.S. dealerships have negative equity. By rolling over the balance into a new loan, this puts buyers in a continuous cycle of being underwater on their loan, especially since most buyers who roll negative equity into a new loan don’t bring much cash to the table to reduce the balance.

......

[H0G]

John Oliver had an interesting piece on car loans.

[Benny Profane]

I wonder how many of these fuckers in my hood driving Bimmers and Audis and Teslas are in that basket of deplorables. Especially Teslas.

[digitaldeath]

I need like 5-7k for a new whip

Benny, hook me up

U got it

[irul&ublo]

Sonatas are made in Korea by fascists.

[Benny Profane]

At least they don't blow up like Samsungs.

[irul&ublo]

Ha...yeah I got a fascist made washing machine that needs to be replaced!

[Bobby Stainless]

This has more to do with depreciation and the rising cost of autos, then people making bad fiscal decisions. (there is some of that, but people have to have cars)

Pretty much any car, is worth 50% of it's value in 3 years. A Ford Explorer now costs 50k.

I had a guy trade a car with me, that he bought from me last year. He put 2k miles on it, and it lost 130k. Now that's some baller depreciation.

[Timberridge]

Benny's got a $4000 road bike he's underwater on.

https://www.unitusccu.com/personal/p.../bicycle-loans

[old goat]

Back in the 5th grade my gym teacher told us to never buy a car on credit. Seemed like a good idea, still does.

[Benny Profane]

Back in the 5th grade my gym teacher told us to never buy a car on credit. Seemed like a good idea, still does.

Nope, not with cheap money, sorry. If you're making 7%, and they offer you a 3% loan,, well, you figure it out. Of course, some people don't realize they're buying something that, eventually, will be worthless. Zero. Fuck, as said above, after the first year, you've lost at least 20%. It's why Benny buys certified used.

[Benny Profane]

Benny's got a $4000 road bike he's underwater on.

https://www.unitusccu.com/personal/p.../bicycle-loans

I got that covered. Credit card points for my trip to Italy. To ride my bike.

[frorider]

Nope, not with cheap money, sorry. If you're making 7%, and they offer you a 3% loan,, well, you figure it out. Of course, some people don't realize they're buying something that, eventually, will be worthless. Zero. Fuck, as said above, after the first year, you've lost at least 20%. It's why Benny buys certified used.

Your clichéd response is correct only in a limited sense. As you know, humans tend to make irrational financial decisions. Low interest loans encourage buying more car than you can truly 'afford' if you then lose your job or face a hudge medical expense during that multi year term. Pretending that a 5 yr low interest loan is used because the buyer understands the time value of money is a useful cover story, at least.

I know beerdrinker and others might be too busy to read the linked article, but it made the point that the many leased cars out there are depressing used car prices of many models, adding to the underwater issue.

[GeezerSteve]

If you're making 7%. . . .

If your gramma had balls she'd be your grandpa

[Benny Profane]

Your clichéd response is correct only in a limited sense. As you know, humans tend to make irrational financial decisions. Low interest loans encourage buying more car than you can truly 'afford' if you then lose your job or face a hudge medical expense during that multi year term. Pretending that a 5 yr low interest loan is used because the buyer understands the time value of money is a useful cover story, at least.

I know beerdrinker and others might be too busy to read the linked article, but it made the point that the many leased cars out there are depressing used car prices of many models, adding to the underwater issue.

I really don't care what it encourages, all I know is that the math works for me, buying a slightly used Subaru with cheap money. Paying cash is kinda dumb, unless that pile of cash is ridiculously big.
Zuckerberg has a mortgage on his house. Just sayin'.

[MagnificentUnicorn]

Back in the 5th grade my gym teacher told us to never buy a car on credit. Seemed like a good idea, still does.

My folks always told me that a car wasn't an investment. As far as the op's article, is it really news that Americans spend beyond their means?

Oh, and for the people that say we NEED cars, I laugh. I would bet that a large percentage of car owners live within walking and biking distance or a short bus ride from their place of employment.

[Benny Profane]

If your gramma had balls she'd be your grandpa

I've told people here where to find those returns, low cost, medium risk, more than once, but, since you insulted my long lost Bobci, I'm not repeating it.

[Timberridge]

Pretty soon we won't buy cars. They'll just autonomously show up at your house driverless and disappear after they drop you off at the Thai restaurant, or in Benny's case, CO.

[Benny Profane]

Pretty soon we won't buy cars. They'll just autonomously show up at your house driverless and disappear after they drop you off at the Thai restaurant, or in Benny's case, CO.

That's very possible. No joke. Although I'd fly to Denver first.
Just read this morning that driverless trucks are hitting the road in Ohio. No more I70 for Benny.

[54-46]

My 10 y/o daughter says having two cars is a waste and that the money could be better used to go places and see people. She's already smarter than I...

[Benny Profane]

My folks always told me that a car wasn't an investment. As far as the op's article, is it really news that Americans spend beyond their means?

Oh, and for the people that say we NEED cars, I laugh. I would bet that a large percentage of car owners live within walking and biking distance or a short bus ride from their place of employment.

You'd really be surprised at the last one. Do you have sidewalks in your neighborhood? Does it rain and snow?

[4matic]

My 10 y/o daughter says having two cars is a waste and that the money could be better used to go places and see people. She's already smarter than I...

Air travel is overrated. The 1000 mile radius around the Bay Area is enough excuse to have a good car or two.

[nutmegchoi]

We spend money over things aren't necessary and those are the things make our lives more fun.

[summit]

As soon as they get self-driving cars that can handle snow, ice, and a bunch of out-of-state human driven cars driving in the snow and ice like idiots... I'll be so down for the driverless car (as long as it has manual override so I can 4wheel up to the trailhead).

I am thinking that this won't happen before the 4Runner turns 180 or 200K.

Buy used.

[XXX-er]

I bought my Ranger new 19K now its worth 14K so 1000$ a year in depreciation

I thot pretty hard about buying a new truck just cuz I can but then I realized that was silly

if you are going to hang on to a vehical til its done new might be a good idea

I'm at the thro a little money on tires/battery/major tuneup or get a new truck